Asian Nations Agree on $80 Bln Fund for Financial Crisis

President Lee Myung-bak and Japanese Prime Minister Taro Aso yesterday agreed to restore bilateral “shuttle diplomacy” that has been suspended after both sides locked horns over the Dokdo islets.

On the sidelines of the Asia-Europe Meeting in Beijing, they also agreed to support an initiative in which Korea, China, Japan and the Association of Southeast Asian Nations will create a joint fund worth 80 billion dollars to fight the global financial crisis.

President Lee’s spokesman Lee Dong-kwan also said Korea, Japan, and China will have a trilateral summit in mid-December in Fukuoka, Japan.

Lee and Aso also agreed to closely cooperate to foster a future-oriented bilateral partnership. They decided to closely cooperate on follow-up measures to the agreement between the United States and North Korea to verify Pyongyang’s nuclear program.

At the meeting, Lee asked Aso to visit Seoul and Aso promised to do so by the end of this year at the earliest.

President Lee in a speech also urged all nations to make a concerted effort for the financial crisis and a reorganization of international entities.

“The International Monetary Fund and the World Bank should strengthen their roles to warn of looming crises earlier, improve supervision, and deal with crisis swiftly.”

“An emergency expanded G8 summit should invite more emerging economies after considering the size and development of each economy. Also needed is reflection on the opinions of Asian emerging economies such as (South) Korea when discussing how to reorganize the international financial order.”

At a luncheon, President Lee, Aso and the leaders of China and ten ASEAN member countries agreed to hold a meeting attended by finance ministers and central bank governors in November, a summit meeting in December and expand currency swaps.

swpark@donga.com